Figma's Historic IPO Surge Crashes Back to Reality
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The momentum briefly continued to push the stock as high as $142.92 on Aug. 1, more than four times its IPO price. However, shares have since dropped to around $78. Analysts, like Steve Sosnick of Interactive Brokers (IBKR), note that such moves show the market's speculative nature, with interest likely to fade if shares remain below the opening price. He also pointed out that only 7% of Figma's shares were available to trade, thereby creating a shortage that drove prices up quickly before demand cooled.
Despite the pullback, Figma's valuation remains high at roughly 37 times sales, which is far higher than peers. For context, if comparing to companies that are in the S&P 500 (SPY), only Palantir Technologies (PLTR), with a ratio above 90 times estimated sales, is higher. Other recent IPOs such as CoreWeave (CRWV) and Circle Internet Group (CRCL) also saw explosive early gains before losing more than 30% from their highs, but Figma's rapid surge and steep drop make it one of the most dramatic stock debuts of the year.
Is FIG Stock a Good Buy?
Overall, analysts see Figma as a high-growth SaaS firm with strong gross margins and retention rates. Although some are cautious about its valuation, most see its product stickiness as a key advantage in its market. As a result, investors expect it to continue growing.
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